Adjusted EBITDA for the second quarter totaled $7.4 million or 3.6% of revenue. (See attached reconciliation “Table 2”)
First Half Operations Review
For the six months ended July 28, 2012 (“first half of fiscal 2013”) total revenues decreased 5.5% to $475.0 million compared to $502.7 million for the six months ended July 30, 2011 (“first half of fiscal 2012”) and in line with Company guidance. The revenue reduction during the first half of the fiscal year, as compared to last year, was primarily attributable to softness in the Company’s collection businesses.
Adjusted EBITDA for the first half of fiscal 2013 totaled $30.3 million or 6.4% of revenue. (See attached reconciliation “Table 2”)
Net income for the first half of fiscal 2013 was $7.2 million, or $0.47 per fully diluted share, compared to $17.2 million, or $1.08 per fully diluted share in the first half of fiscal 2012.
After considering the costs associated with the exit of underperforming brands and businesses, the voluntary retirement program, the closing of the sourcing office and the relocation of the third party logistics provider, earnings per fully diluted share, as adjusted, for the first half of fiscal 2013 was $0.70 compared to earnings per fully diluted share, as adjusted, of $1.16 in the first half of fiscal 2012. For the first half of fiscal 2012, EPS, per fully diluted share, as adjusted, excludes costs related to the impact of early extinguishment of debt and duplicate interest expense. (See attached reconciliation “Table 1”)
Balance Sheet Update
George Feldenkreis, Chairman and CEO of Perry Ellis International commented, “We believe that our excellent financial position and the strength of our operating platform provide us with the foundation to capitalize on our improved sportswear offering and maximize sales opportunities across multiple distribution channels around the globe. We are confident that the focus and disciplined management of our balance sheet will provide support for continued growth in our core competencies.”